Southeast Asia’s largest economy among world’s top 10 retirement destinations

By Hoang Vu   &nbspFebruary 10, 2026 | 10:08 pm PT

A tourist is seen on a surfboard at Kuta Beach in Kuta near Denpasar on Indonesia’s resort island of Bali on May 27, 2025. Photo by AFP

Indonesia, the largest economy in Southeast Asia, has been ranked the world’s 10th best retirement destination this year as voted by France-based website Retraite sans Frontières.

It was among three Southeast Asian representatives to appear the ranking along with Thailand (4th) and Vietnam (9th).

Indonesia, especially Bali Island, is highly rated for its reasonable cost of living and climate, but has drawbacks in terms of geographical distance for Europeans and the quality of healthcare services.

Indonesia has a year-round tropical climate characterized by high temperatures and humidity, owing to its equatorial location.

Average temperatures in coastal areas typically range between 26 and 32 degrees Celsius, with humidity levels often exceeding 75%. The country experiences two primary seasons shaped by monsoon winds: a dry season from May to September and a wet season from October to April.

The ranking evaluates destinations based on 12 criteria, with the cost of living carrying the greatest weight, accounting for 20% of the total score. Other key factors include climate, healthcare quality, safety, accessibility to services and transport conditions.

Paul Delahoutre, founder of Retraite sans Frontières, said living abroad could help retirees save between 15-50% in daily expenses compared to staying in France. Tax policies, especially incentives for foreign pension income, are also considered an important factor in destination choice.

Portugal retained the top position in the global ranking, followed by Spain, Greece, Thailand, Mauritius, Morocco, Tunisia, Senegal and Vietnam.


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